Economic and Financial Performance in the Luxury Fashion Industry: The Case of Valentino under Mayhoola for Investments (2012–2024)

This thesis analyzed the case of Valentino, focusing on the strategic and financial implications of Mayhoola’s ownership (2012–2023) and the partial disinvestment to Kering in 2023. The research investigated whether Mayhoola’s investment generated a sustainable increase in enterprise value and whether the entry of Kering, through the acquisition of a 30% stake with the option to purchase full control by 2028, represents an optimal strategy for further value maximization. The study adopted a corporate finance perspective, combining both quantitative and qualitative approaches. A detailed financial analysis was conducted using consolidated income statements, balance sheets, and cash flow statements of Valentino, supported by ratio analysis. The results were benchmarked against those of 5 selected competitors, with the aim to evaluate whether Valentino’s enterprise value growth under Mayhoola aligns with or better than that of its peers. The outcomes highlighted that Mayhoola adopted a hybrid role during its ownership, combining the long-term and rigid exit horizon typical of institutional investors with a more direct and strategic role, which involved value-creation and direct control over investments. In fact, it drove growth through brand repositioning, product expansion, and international retail development. Between 2013 and 2023, Valentino achieved a remarkable increase in revenues, margins, and brand equity, despite the challenges of the COVID-19 pandemic. The sale to Kering represents a new phase, where potential synergies in distribution, digital innovation, and sustainability could further enhance enterprise value. Finally, the research concluded that Mayhoola’s investment successfully created both shareholder and shared value, while Kering’s entry represents not only a financial milestone but also a strategic opportunity to consolidate Valentino among the global leaders of the luxury industry.